Rupee Gains 4 Paise, Ends At 48.77 - Feb 6, 2009

The Indian rupee on Feb 5 shot up by nearly four paise to close at 48.77/79 against the US currency on dollar buying along with a weak dollar overseas. The domestic unit at the Inter-bank Foreign Exchange (Forex) market, resumed lower at 48.88/90 from the previous close of 48.81/82.

However, the expectations did not materialize and the rupee recovered smartly to 48.73 before concluding the day at 48.77/79.

The dollar was higher against the euro and British pound as markets awaited interest rate decisions in Europe. In Europe the Bank of England has reduced its lending rate to 1% from 1.50% later on Feb 5. The inflation fell to 5.07 per cent for the week ended January 24 After rising for two weeks, from 5.64 in the previous week, giving scope for the RBI to cut rates. The Reserve Bank of India, however, fixed the reference rate for the US dollar at Rs 48.82 and for the euro at Rs 62.69.

Capital Rupee Gains 15 Paise Ends At 50 Dollar - Dec 04, 2008

The Indian rupee extended its gains for the second day in a row and closed at 50.00/02 against the US dollar due to anticipation of capital inflows on account of surge in Asian stock markets. A leading trader in foreign exchange said banks were selling dollars either on RBI''s instructions or on their own as they feel there is ample liquidity in the system, helping the rupee to gain.On hopes of some foreign inflows into the local share markets, the rupee strengthened past 50 per dollar in early trade.

Foreign fund flows have been the key factor determining the rupee''s direction in the last two years. In active trade, the domestic currency resumed higher at 49.91/95 a dollar a dollar and later moved in a range between 49.78 and 50.10. Finally, it ended at 50.00/02, with a gain of 15 paise. The rupee premiums on forward dollar ended lower on sustained receiving by exporters.